Document automation

Document automation (also known as document assembly) is the design of systems and workflows that assist in the creation of electronic documents. These include logic-based systems that use segments of pre-existing text and/or data to assemble a new document. This process is increasingly used within certain industries to assemble legal documents, contracts and letters. Document automation systems can also be used to automate all conditional text, variable text, and data contained within a set of documents.

Contents

The basic functions are to replace the cumbersome manual filling in of repetitive documents with template-based systems where the user answers software-driven interview questions or data entry screen. The information collected then populates the document to form a good first draft'.[1] Today's more advanced document automation systems allow users to create their own data and rules (logic) without the need for programming.

While document automation software is used primarily in the legal, financial services, and risk management industries, it can be used in any industry that creates transaction-based documents. A good example of how document automation software can be used is with commercial mortgage documents. A typical commercial mortgage transaction can include several documents including:

Some of these documents can contain as many as 80 to 100 pages, with hundreds of optional paragraphs and data elements. Document automation software has the ability to automatically fill in the correct document variables based on the transaction data. In addition, some document automation software has the ability to create a document suite where all related documents are encapsulated into one file, making updates and collaboration easy and fast.

Simpler software applications that are easier to learn can also be used to automate the preparation of documents, without undue complexity. Clipboard managers allow the user to save frequently-used text fragments, organize them into logical groups, and then quickly access them to paste into final documents.

The role of automation technology in the production of legal documents has been widely recognised. For example, Richard Susskind’s book ‘The End of Lawyers’ looks at the use of document automation software that enables clients to generate employment contracts and Wills with the use of an online interview or decision tree.[3] Susskind regards Document Assembly as one of 10 'disruptive technologies' that are altering the face of the legal profession.[4] In large law firms document assembly systems are increasingly being used to systemise work, such as complex term sheets and the first drafts of credit agreements.[5][6]

With the liberalisation of the UK legal services market spearheaded by the Legal Services Act 2007 large institutions have broadened their services to include legal assistance for their customers.[7][8] Most of these companies use some element of document automation technology to provide legal document services over the Web.[9] This has been seen as heralding a trend towards commoditisation whereby technologies like document automation result in high volume, low margin legal services being ‘packaged’ and provided to a mass-market audience.[10][11][12]

Insurance policies and certificates, depending on the type, policy documents can also be hundreds of pages long and include specific information on the insured. Typically, in the past, these insurance document packets were created by a) typing out free-form letters, b) adding pre-printed brochures c) editing templates and d) customizing graphics with the required information, then manually sorting and inserting all the documents into one packet and mailing them to the insured. The various documents included in one packet could include the following kinds of documents:

Welcome letter

Contract

Certificate

State specific policy documents

Listing of items insured and insurance amounts

Amendments

Riders

ID card

Company information

Marketing material (other products)

A lot of work can go into putting one packet together. In most policy admin systems, the system will generate some kind of policy statement as a starting point, but might need to be customized and enhanced with other required materials.